Ladies and gentlemen, thank you very much. Good afternoon and thank you for waiting. Welcome to the Teleconference of Eletrobras to talk about the Results of the Second Quarter of 2019. We inform you that -- let me remind you that this is available as a PowerPoint at the website of Eletrobras. [Operator Instructions]Before we continue, we would like to clarify that any changes or any statements that are done in this teleconference regarding the perspectives of the business of the company, projections, operational goals, financial goals are simply premises and beliefs of the Directors of Eletrobras based on information that is available today to the company.Any future considerations are not assurance of performance, because they depend on circumstances that might take or not place. The investors have to -- has to understand that operational factors and other factors might play a role into the development of these results.Now, I would like to give the word to Mr. Wilson Ferreira Junior, Mr. Armando Casado De Araujo, Financial Director, and [Indiscernible] Relations of Eletrobras; and Elvira Presta, Financial Director. Mr. Wilson, good afternoon. The floor is yours.

Thank you for your attention in this teleconference. So, I would just to clarify that Armando Casado is not the Financial Director since January. And in fact, the Financial Director is Elvira Presta. She is by my side. But I'm sure that Armando is listening and I send him my best regards.Well, we start with our presentation. I think it's not working right now. So, just as a disclaimer -- well, we went through the disclaimer. And we are going to talk about the main issues, the main points of our quarter. It's a quarter that we will be able to share with you.Now, I start highlighting that the decision of the controllership, the (inaudible) 10 days ago, where the President of the Republic authorized that the studies on the [Indiscernible] of Eletrobras would be deepened and now this process starts. So, it's important these are all decisions that have a goal of dimensioning the costs of the public machinery of the country.Now, also governance, we have here -- in this year, we have the highest grade for the fourth cycle in the governance index of the state companies of Eletrobras, but this time, we did an audit of all the companies that are under the control of Eletrobras.And this is the result of a very important process that is ongoing at the holding, and it's due to the practices that are centered at each of the counsels and it's something very important. And we are sure that the control is well done, that the governance is well done, and it's a high level governance, and it's reported with all the important criteria. So that's how we got the high-level at the IG-SEST.We have the business plan, TDNG 2019-2023; we are reducing the payroll and improving the processes of the…

We will now do the Q&A. [Operator Instructions]The first question will be from Andre Sampaio of Santander. Andre?

Good afternoon. I wanted to ask a question in regards to this comment that you did in the release and now the presentation about the hiring of a consulting company. I wanted to know if you can go over the details. What are the details that the consulting companies did? And does that have anything to do with the sale, a part of the company for the private market?And the second question is the provision. So, if you can give us more details of which are the next steps, not only at Aneel, but in regards to the law that can impact the calculation?

Well, about the issue of the consulting companies. We work -- we have a lot of consulting issues that are ongoing, none of them has to do with the [Indiscernible] process because this will only happen once we have the process ongoing by law. And it's subject to the Chamber of Deputies, and it's been elaborated. But we have consultancies now, several, working there.One is taking a look at our capital structure, another one looking at our tax efficiencies. We have another consulting taking a look at strategy. The -- and we have the highest consulting, it's -- at the process of the [Indiscernible] of the distributors. We hired the D&E that subcontracted the services, which is an expensive service, and it's incorporated in this process. So, these are the data that have been concluded and will bring good results for the company.Now, in -- I want [Indiscernible] to talk about the other consulting, but it's the result, as I told you, of an additional fiscalization. We had until -- Aneel, the inspection -- and we are worried about our report with the variations, and that's why the company -- companies do that observation.So, Andre, the company has been working, and we had a public audience. Last week, we had a report on the process. So, we had the publication of all the data -- all the explanation of the effects of the provisionary measure. And the company in this quarter, now we still have the inspections of Aneel and we are considering the more evident risks in the provisional measure.Now, it's not that we're going to have a negative decision, but it doesn't mean that the company cannot check the prices. We have to see what's the best here, but we still have to wait the deadline for the provisional measure next week for the conversion of it, and we are expecting on the decision in regards to the provisional measure.But of course, the result of the approval of this provisional measure is not treated in the provisions in this quarter. This quarter is taking into consideration the decision of Aneel in regards to the inspections, but we're still waiting the final decisions. Until the end of August, we should have the decision by Aneel until the end of -- because of that.

Well. Thank you.

Thank you, Andre.

Now, we have another question from Kaique Vasconcellos from Safra.

Just still talking about the CCC. Do you have an expectation on how the payout is going to be, the payment of that liability is going to be? And now with the update of the controller so we deal with the studies about the potential privatization, I just wanted to understand, who's going to be the leader of these studies? Is it going to be Eletrobras, BNDES? And any -- can you give us a guide on how is these processes going to take place?

Second part, I'm going to answer about the second part. The processes, we don't have a definition -- clear definition, but taking into consideration the right that we did -- how we did things in the past, this process starts with a provision, with a project -- a law project from the Ministry of Mines and Energy that is connected to the Ministry of Economy, and that goes through the Chamber of Deputies, the presidency of the Chamber of Deputies. That's the process that should be unfolding for the next phase.Now, from that point, the expectation is that we're going to do the capitalization using the elements that are very similar. But I have to remind you that in the past, we did -- didn't hire consulting companies, so we have to align the understanding of the ministries in regards to the deadlines. And I think that this will be unfolding for about a month.It cannot be done by Eletrobras. But evidently, it's the -- Eletrobras is the final object of the privatization and -- that has the objective of solving the issue of the energy quarter that have increased the rate. So, it's a very complex process.In regards to the CCC of Amazonas Energia, just to remind you, we had BRL8.5 billion, basically, BRL4 billion is Amazonas. And the other BRL4 billion, we're talking about BRL3.800 billion with Eletroacre, very small, and Boa Vista.From Amazonas, we have with this provision BRL921 million. So, it was about, previously, BRL1.5 billion. And for the other companies, we have another BRL1.5 billion provision.As Aneel is evolving in inspection, what seems to happen is we're going to have the results -- the final results, and there is a part of all this that will be paid. We're probably going to have an update.And from Amazonas, just to remind you that the first period of the inspection is positive. The second period is a negative partly because of a payment of the CCC. The values now basically canceled each other, and this is the credit that will be paid by the federal government and one other we said that it can pay that via bonus.So, it's included in the budget of the federal government. And knowing what would be their way of how they're going to pay this by the federal government, and Eletrobras has to be updated by the index of -- the inflation index, Selic. So, the report approved the provisional measure.So, we have to separate the flows of the distributors. We have to stop with the inspection of Aneel. The part of Amazonas would basically depend on the budget of the federal government and what is going to be that level of payment. Preliminarily speaking, the first option would be the bonuses.

Thank you.

[Operator Instructions]We close this moment the Q&A session. In this way, we give the word back to Wilson Ferreira Junior. for the final considerations. Mr. Wilson?

I wanted obviously to help everybody -- well, thank you, to everybody that helped organize the conference. It was a very detailed presentation. We want to give the most transparency in our presentation and the results I think that we tried to work in that sense.Obviously, I wanted to highlight that this quarter, we have the importance of the conclusion of our operation and distribution. It recognizes the importance of the decision of privatization. Of course, we have issues regarding two fiscalizations that are ongoing. We still have impacts that are recognized.But just to clarify, the issue of the right that we have in regards to the law, here, we are discussing sometimes the deadline. We have to put it in the budget. But the right is that the company has taken the credit, and obviously it's going to try and pay it the best way possible.It's important to highlight the fact that we're in a period of concluding the works, and that brings positive perspective to the company. And we are strengthening the results of these operations, and the company starts to have a relief in our cash flow. And we're working with several fronts in the sense of efficiency of the company. So, we are very satisfied with what we did.What we seek, an increase of our efficiency, improvement of the processes. [Indiscernible] that the SAP will get into the third version more automatized. We have here in our shared services center, we have a set of operations with the support of consulting, so that we can be more efficient and that will be reflected in the works of the company.So, that the company has more competitiveness, we have a big debt that we can face, it's less lever -- there's less leverage of the debt because of…

At this moment, the teleconference of Eletrobras is close. Thank you for your participation and have a wonderful afternoon.